The world's biggest mining company has reported another record rise in iron ore output and at many of its Australian coal mines.

BHP Billiton's 2013 annual production report shows the mining giant recorded a 17 per cent increase in iron ore production for the June quarter compared with the same time last year.

Yesterday, its smaller competitor Rio Tinto reported a better than expected six per cent rise in iron ore output for the six months to the end of June, also a record result.

For the full year, BHP Billiton had forecast iron ore production of 183 million tonnes, but it instead produced 187 million tonnes and now expects output to jump to about 207 million tonnes next financial year.

BHP says the first production at its Jimblebar mine expansion in the West Australian Pilbara region is now expected in the December quarter, ahead of schedule.

Output at its Queensland Coal operation rose by 54 per cent in the quarter, driven by record annual production at its Peak Downs and South Walker Creek mines.

BHP closed nearby mines at Norwich Park and Gregory during the year.

For the period total petroleum production was rose by six per cent to 236 million barrels of oil equivalent.

Petroleum made up around 20 per cent of the company's earnings behind iron ore, which brought in 50 per cent of revenue.

Fat Prophets resources analyst David Lennox says the results indicates both BHP and Rio have faith in ongoing Chinese demand, as they spend billions to boost production capacity.

"You'd have to suggest that they feel quite comfortable with what they're seeing in terms of their major customer, which is China," he said.

"Even though its June quarter gross domestic product had slowed from 7.7 [per cent] down to 7.5, at that rate of growth China will still be requiring significant volumes to feed its appetite for growth."

Mr Lennox believes profits in the mining sector will come from export growth and cost control in the coming reporting season, with commodity prices having fallen from their peak.

"There's no doubt that the volume part of their financials when they do report in August will be positive," he said.

"We also think that currency will be positive, and we also think that they will be able to show that they've extracted further costs from their business."